Acct 5500 Block 1 Hw

Module 1

M1-21

Assets Liabilities Equity

Hewlett Packard $124,503 $83,722 $40,781

General Mills $18,674 $12,062 $6,612

Target $43,705 $28,218 $15,487

General Mills and Target have an equal ratio of owner financing and are the most owner financed. HP is the most non owner financed company.

M1-24

Cash Asset – Balance Sheet, Statement of Cash Flows

Expenses – Income Statement

Noncash Assets – Balance Sheet

Contributed Capital – Balance Sheet, Equity

Cash outflow for capital expenditures – Statement of Cash Flows

Retained Earnings – Balance Sheet, Equity

Cash inflow for stock issued – Statement of Cash Flows, Equity

Cash outflow for dividends – Statement of Cash Flows, Equity

Net Income – Income Statement, Equity, Cash Flows

M1-26

Internal controls are important to monitor because they are used to validate the accuracy of company’s accounting documents. If these are not regulated it would be very easy for companies to report false information or only data that makes a company attractive to investors.

P1-37

Abercrombie and Fitch Balance Sheet

Assets

Cash $826

Noncash Assets $2,122

Total Assets $2,948

Liabilities and Equity

Total Liabilities $1,057

Equity

Stockholders Equity $1,891

Total Equity $1,891

Total Liabilities and Equity $2,948

Abercrombie and Fitch Income Statement

Revenues $3,469

Cost of Goods Sold ($1,257)

Total $2,212

Expenses ($2,062)

Net Income $150

Abercrombie and Fitch Statement of Cash Flows

Cash from operating activities $392

Cash from investing activities ($93)

Cash from financing activities ($143)

Net Increase in cash $156

Cash Beginning of Year $670

Cash End of Year $826

b. The negative amounts in investing and financing activities do not worry us since it shows that the company is investing in its future and paying off any debt it may have.

c. Profit Margin = 4.32

Asset Turnover = 1.18

Return on Assets = 5.09...